Bankruptcy legal fees allowable expense for Means Test/Schedule J?

[psears123]

Hello,

Can't seem to find an answer to this seemingly simple question, but are the legal expenses incurred for the filing of bankruptcy an allowable expense in Means Test/Schedule J calculations?


Thanks!

[DebtEnder]

The means test is for month to month living, as such legal fees for a one time filing of BK is not part of the process.

[tcreegan]

That is an excellent question psears!

Schedule J is 'forward looking' so a one-time fee b4 filing would not go on J

But as a means-test expense....hmmm

It would be under "other necessary expense" The means test is largely based on IRS standards, this is from the IRS handbook:

5.15.1.10 (10-02-2009)
Other Expenses
Other expenses may be considered if they meet the necessary expense test - they must provide for the health and welfare of the taxpayer and/or his or her family or they must be for the production of income. This is determined based on the facts and circumstances of each case.

Disallow accounting or legal fees that are not related to remaining current, solving the current liability or do not meet the necessary expense test.

BUT, I'll bet it is going to depend on the trustee. I would be impressed at the audacity, but a trustee may not be so impressed....

Tom in Colo